6.5 Flynn’s business incurs the following transactions in the year to 31 March 2012:

n Purchase of inventory for cash of £1300.

n Sale of a non-current asset with a written down value of £300. The sale proceeds are

£900.

n Sale on credit for £3500.

n Payment made in respect of a trade payable outstanding, for electricity bill of £6350.

n Drawings of £800.

n Purchase of a motor vehicle for use in the business on 1 April 2011. The vehicle costs

£10 000 and is to be depreciated at 25% per annum.

For each transaction show the impact on cash, other assets and liabilities, and the impact on profits.